1. Political Parties

2. A. Divisions in Washington’s Cabinet Bank of the United States - 1791
- Hamilton wanted a national bank to deposit tax money and to print common bank notes (paper money since each state had different money)
During this time the U.S. had only 3 banks, but more than fifty different currencies (13 for each of the colonies, then Portuguese, English, Spanish, French, backcountry cities, big cities)
Standard form of currency
Hamilton realized that we need to pay off our debts to have good credit with the rest of the world. We need their help to survive-trade.
Jefferson we could make everything on our own, so there wasn’t a point to paying off the debts.
Ham wants to use the bank as a place to collect taxes, make currency, and help people save money.
Jeff has been to Eng and France (not Ham) where the Industrial Revolution is in full swing. His takeaway is that you have these large factories owned by the very rich. The people working it are incredibly poor. He’s worried that is going to happen to the U.S.

3. - Jefferson argued it was unconstitutional
because it wasn’t a power listed in the Constitution
Hamilton cited the
elastic clause in Const:
said federal gov’t can
do anything “Necessary
and proper”
Standard form of currency
Hamilton realized that we need to pay off our debts to have good credit with the rest of the world. We need their help to survive-trade.
Jefferson we could make everything on our own, so there wasn’t a point to paying off the debts.
Ham wants to use the bank as a place to collect taxes, make currency, and help people save money.
Jeff has been to Eng and France (not Ham) where the Industrial Revolution is in full swing. His takeaway is that you have these large factories owned by the very rich. The people working it are incredibly poor. He’s worried that is going to happen to the U.S.
Washington agreed with
Hamilton and the bank
was established

4. European War
- France v England - Jefferson sided with France - Hamilton with England - Washington said we should stay neutral - Jefferson furious; resigns - Leads to political parties

5. Democratic-Republicans
Political Party
Federalists
Democratic-Republicans
Leader:
Alexander Hamilton
Thomas Jefferson
broad/loose; all laws necessary and proper
(elastic clause)
Interpretation
of the Constitution:
narrow/strict; only do what was stated in the Constitution (10th Amend)
Type of Government:
strong federal government
strong state governments
Hamilton: Poor, parents never married, father left and mom died when he was 10. His dad had a first wife and she sued Ham for the shop his mom left him. He is your age when he looses the shop. Lives in Caribbean, where slaves outnumber whites 8 to 1. Slavery there is horrible-you have the wealthy plantation owners, slaves, and a small white population that provides services for whites. Fear is a big motivator-constant fear of slavery uprising. Never owns a slave, but sees the horrible condiditions. He gets a job and the owner of the store goes on a trading trip. Jeff makes money and actually catches people who cheat him. The older people around him realize that he shouldn’t stay on an island and they send him to NY at 16, applies to Princeton, they tell him he needs to finish his education in 3 years, he wants to do it in 2, they tell him no so he quites. He goes to Columbia and joins the fight in Manhattan. WA sees him and makes him a high officer.
Jefferson: Bor in VA, well to do family, when Jeff is 5 his father makes a promise with his friend that if either of them dies the surviving friend will take care of the other’s kids. His friend dies and Jeff family has to move to take care of the family. Jeff later writes that one of his earliest childhood memories is going on this journey and being carried by a slave on a pillow. His father dies when he is about the 8th graders age, he gets a law degree, marries a woman named Martha, she dies at young age after several kids, and he’s devastated. His has a beautiful house on Monticello and is a farmer But a gentlemen farmer-has slaves, but against it. He runs away during a battle in the war-contrast to Ham fighting.
Federalists: Think big-big gov, big business, big interpretation of Const (you can interpret what you want from the Const). Ham believed the gov should be strong. He felt that the gov should be run by aristocratic leaders-by the prosperous, well-educated citizens who he thought had the time and talents to best run a country. He feared the masses-said sometimes they acted like sheep, mindlessly following the leaders.
D-R: Think small-small family farms, small gov, little power in gov, small/narrow interpretation of Const-if Const doesn’t allow you to do it, you don’t do it. Jeff feared a powerful gov. Said a strong, centralized gov as an enemy of individual liberty. Jeff had been in Europe and had seen kings in action-he hated monarchies and feared a king-like president. He had faith in ordinary ppl. He thought they could govern themselves-if they were educated. So he wrote a plan for public schools and colleges.
Economy based on:
industry-
big business
agriculture-
small farms
Who should rule:
wealthy, educated people
average people

6. B. Washington’s Farewell Address - 1796
Farewell Address was published in newspapers
His advice:
avoid political parties
avoid accumulating debt
stay isolated from foreign nations (neutral)
Washington realizes that we must be neutral. He sees that we can’t win any wars and Europe is just looking for an excuse to get involved in our affairs.
He explains that we need unity-no divisions of the political parites. He predicts that if we divide we will have a civil war.

7. Crash Course History